(RTTNews) - The Reserve Bank of New Zealand Thursday slashed interest rates by 150 basis points.
RBNZ Governor Glen Bollard announced that the Official Cash Rate would be 5.00 percent, from the previous rate of 6.50 percent.
"The ongoing financial market turmoil and the marked deterioration in the outlook for global growth have played a large role in shaping today's decision," said Bollard in a statement accompanying the decision announcement. "Activity in most of our trading partners is now expected to contract or grow only very slowly over the next few quarters. Economic activity in new Zealand will be further constrained as a result."
The RBNZ move follows action by the Reserve Bank of Australia on Tuesday to cut interest rates 100 basis points to 4.25 percent.
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